Sizing Up Small Caps

Jana Could Spark Gains in Outerwall

The situation is heating up at Outerwall. Earlier this month, Jana Partners disclosed that it had accumulated a 13.5% stake in the operator of the Redbox kiosks, making the activist-investment firm the company's largest shareholder.

Jana, run by Barry Rosenstein, could be the catalyst that investors have been waiting for. If successful, the activist's involvement could ignite the shares (ticker: OUTR), which closed Thursday at...